IKEA Announces Expansion Plans in MexicoBy Antonio Gozain | Fri, 04/29/2022 - 15:08
One year after opening its first store in Mexico, Swedish furniture store IKEA announced further expansion plans in the country, including a US$100 million investment to open a physical store in Guadalajara and a new hub in Puebla to serve online sales.
“Mexico is one of our most important markets for expansion and is among the top ten countries for home decoration furniture. The country has a strategic position in our investment plan and it is the first time that we have expanded in Latin America. Its potential is enormous and it is a strong economy,” said Ricardo Pinheiro, Commercial Director, IKEA México, to El Economista.
IKEA’s expansion plans in Mexico include a US$100 million investment for its second store in the country, which will be located in Guadalajara, Jalisco. IKEA’s first store, located in Mexico City, represented a similar investment and opened its doors on April 8, 2021. The complex has an area of 23,500 m2 and three floors housing over 5,300 items, in addition to a restaurant with a capacity for over 650 guests that features 150 food products of Swedish origin, as reported by MBN.
IKEA will open its Puebla facilities in 2H2022, which are expected to be smaller than the stores in Mexico City and Guadalajara. The facilities in Puebla will be dedicated to e-commerce. IKEA is also preparing to invest in its manufacturing facilities in Saltillo, Coahuila, said Pinheiro: “We see a very strong investment coming to the Saltillo plant. IKEA has over 1 million m2 of finished construction, with 500 collaborators. We expect to have about 1,000 people in the team soon.” Currently, the Saltillo plant produces mattresses, sofas and pillows for the Mexican and North American markets. However, given IKEA’s expansion to Chile in 1H2022, it could add manufacturing lines to meet South American demands.
The company is also open to increasing its Mexican supplier base, said Pinheiro: “We have a project to start incorporating more Mexican suppliers. We already work with suppliers of lamps, chairs, furniture and dining rooms. We are very open so in the next 12 months, we will have more local suppliers.”
Further expansion plans may include a third physical store in Monterrey to cover Mexico’s three main cities, said Pinheiro. “We did not come to Mexico to be here for two years. IKEA thinks in the long-term.” The company could also add two more facilities, close to Guadalajara and Monterrey, to meet the e-commerce demand, he added.